Hedge-fund billionaire John Paulson's gold fund lost 14 percent in January, its first month of operation, two investors said.

Gold futures fell to a three-month low of $1,044.50 in New York today as the dollar's rally reduced demand for the precious metal as an alternative investment. Paulson, 54, is the largest investor in the fund with a $250 million personal stake, the people said.

So, was the establishment of his gold fund the proverbial "ringing the bell at the top"?